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TSX & TSXV: Myths and Realities in Challenging Times November 15 th , 2013 Carlos Espinosa
TSX & TSXV: Myths and Realities in Challenging Times November 15th, 2013 Carlos Espinosa
Disclaimer
This document is for information purposes only. While the information herein is collected and compiled with care, neither TMX Group Limited nor any of its affiliated companies represents, warrants or guarantees the accuracy or the completeness of the information. You agree not to rely on the information contained herein for any trading, legal, accounting, tax, investment, business, financial or other purpose.
This information is provided with the express condition, to which by making use thereof you expressly consent, that no liability shall be incurred by TMX Group Limited and/or any of its affiliates as a result of any errors or omissions herein or any use or reliance upon this information.
2 © 2013 TSX Inc. All rights reserved. Do not sell or modify without the prior written consent of TSX Inc.
Canada and TSX: Strong Fundamentals
3 * World Economic Forum, September 2012, five years in a row
Economically stable § Canada is the fourth largest equity
market by float capitalization in the MSCI World Index
§ World’s soundest banking system* § Lowest debt-to-GDP among G7 § Strong equity culture § The global exchange leader
for new listings in 2012, 2011, 2010 and 2009
§ ~$2.2 Trillion in market cap
Resource rich § World’s largest producer of
zinc and uranium and major producer of gold, nickel, aluminum and lead
The World Lists on TSX and TSXV
4
TSX and TSXV International Listings by Country/Region
Total International Listings as at June 30 2013 = 331 TSX = 175 listings • QMV=$140.5 B TSXV = 156 listings • QMV= $3.4 B
The World Trades on TSX
~40% of daily trading originates from international brokers
5
Toronto Stock Exchange Volume & Transactions (2004-2012)
Diverse Issuer Base
6 * As at June 30, 2013 includes issuers on Toronto Stock Exchange and TSX Venture Exchange (100% = 3769)
Number of Issuers by Sector
Mining 1655
Oil & Gas & Energy Services 462
Diversified Industrials 297
Structured Products 219
Life Sciences 108
ETFs 291
Financial Services 118
CPC 139
Clean Technology 114
Real Estate 98
Technology 170
Utilities & Pipelines 28
Comm & Media 46
Forest Products 24
Service at All Stages of Growth
Serving all Market Caps A Unique Market Structure with Strong Feeder System
569 graduates +136 M&A*
* Market Capitalization, June 30, 2013 *From January 1, 2000 – June 30, 2013 7
247 mining
graduates 576 Issuers
2,089 Issuers
449 Issuers 110
534 Issuers 11
The Mining Sector
Current challenges for mining companies
• World Economy
• Commodity prices
• Engagement of Local Communities
• Higher exploration / production costs
• Resource Nationalism
• Regulatory Environment
• Missed Expectations
9
How the industry is facing those challenges?
• “Surviving mode” • Focused on projects in stable jurisdictions • Alternative Financing Tools: Royalties, Joint
Ventures, Private Equity, Divest • M & A • Care & Maintenance
10
11
Exploration 1191
Advanced Exploration 891
Production 201
Development 121
Mining Companies by Stage of Project
Source: Infomine as at September 5 2013
Mining: First Half Global Financing Activity
12
49% of all global mining equity financings
are done by TSX and TSXV listed issuers
32% of the equity capital raised
globally for mining Source: Gamah International, 2013 YTD June, compiled by Toronto Stock Exchange
Global Mining Equity Financing Trend 2013 H1 (C$ Billions)
2.2
2.0 1.9
0.50.4
0.0
TSX/TSXV NYSE/NYSEMKT
ASX LSE/AIM HKSE Other
702 2 655 64 1 5
Mining: Equity Capital Raised on TSX/TSXV
13
$2.2 Billion raised by TSX and TSXV listed issuers in the first half of 2013
Africa: $373M
Australia: $99M
USA: $297M
Latin America: $597M
Equity capital raised on TSX and TSXV for mining companies by location of project Source: TSX/TSXV Market Intelligence Group, YTD June 2013
UK/Europe: $110M
14
TSX Venture Exchange: Mining Financing
0
50
100
150
200
250
300
350
0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950
1,000 1,050 1,100 1,150
Jan-‐08
Mar-‐08
May-‐08
Jul-‐0
8
Sep-‐08
Nov-‐08
Jan-‐09
Mar-‐09
May-‐09
Jul-‐0
9
Sep-‐09
Nov-‐09
Jan-‐10
Mar-‐10
May-‐10
Jul-‐1
0
Sep-‐10
Nov-‐10
Jan-‐11
Mar-‐11
May-‐11
Jul-‐1
1
Sep-‐11
Nov-‐11
Jan-‐12
Mar-‐12
May-‐12
Jul-‐1
2
Sep-‐12
Nov-‐12
Jan-‐13
Mar-‐13
May-‐13
Jul-‐1
3
Amount of Mining Equity Capital Raised ($M) Number of Financings
15
Toronto Stock Exchange: Mining Financing
0
10
20
30
40
50
60
70
-‐ 200 400 600 800
1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 3,600 3,800 4,000 4,200 4,400 4,600 4,800 5,000 5,200 5,400 5,600 5,800 6,000 6,200 6,400 6,600 6,800
Jan-‐08
Mar-‐08
May-‐08
Jul-‐0
8
Sep-‐08
Nov-‐08
Jan-‐09
Mar-‐09
May-‐09
Jul-‐0
9
Sep-‐09
Nov-‐09
Jan-‐10
Mar-‐10
May-‐10
Jul-‐1
0
Sep-‐10
Nov-‐10
Jan-‐11
Mar-‐11
May-‐11
Jul-‐1
1
Sep-‐11
Nov-‐11
Jan-‐12
Mar-‐12
May-‐12
Jul-‐1
2
Sep-‐12
Nov-‐12
Jan-‐13
Mar-‐13
May-‐13
Jul-‐1
3
Amount of Mining Equity Capital Raised ($M) Number of Financings
16
TSX and TSXV: Mining Financing
-‐
50
100
150
200
250
300
350
400
450
-‐ 200 400 600 800
1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 3,600 3,800 4,000 4,200 4,400 4,600 4,800 5,000 5,200 5,400 5,600 5,800 6,000 6,200 6,400 6,600 6,800 7,000
Jan-‐08
Mar-‐08
May-‐08
Jul-‐0
8 Sep-‐08
Nov-‐08
Jan-‐09
Mar-‐09
May-‐09
Jul-‐0
9 Sep-‐09
Nov-‐09
Jan-‐10
Mar-‐10
May-‐10
Jul-‐1
0 Sep-‐10
Nov-‐10
Jan-‐11
Mar-‐11
May-‐11
Jul-‐1
1 Sep-‐11
Nov-‐11
Jan-‐12
Mar-‐12
May-‐12
Jul-‐1
2 Sep-‐12
Nov-‐12
Jan-‐13
Mar-‐13
May-‐13
Jul-‐1
3
Amount of Mining Equity Capital Raised ($M) Number of Financings
17
Mining Delisting
TSX TSXV
2
3
3
7 3
6
2
10
13
6 3
0
0
5
10
15
20
25
30
35
40
45
50
2008 2009 2010 2011 2012 2013 YTD August 31
Failure to Meet Continued Listing Requirements
At the request of the company
Following M&A
4
12 6 6
8
8
5
10
8 1
5
6
0
5
10
15
20
25
30
35
40
45
2008 2009 2010 2011 2012 2013 YTD August 31
Failure to Meet Continued Listing Requirements
At the request of the company
Following M&A
Mining Equity Capital Raised by Use of Proceeds
18
All Equity Exchanges TSX and TSXV
Source: Gamah International Limited, YTD June 2013
Toronto Stock Exchange
19 YTD August 31 2013
Company HQ Location
Gross Proceeds
Type of Financing Commodity Sought Property Location
Platinum Group Metals Ltd. South Africa $180.0M Secondary Offering Platinum, Palladium South Africa, NWT, ON
Detour Gold Corporation ON $176.1M Secondary Offering Gold Ontario
Allied Nevada Gold Corp. USA (NV) $154.3 M Secondary Offering Gold USA (NV)
Guyana Goldfields Inc. ON $100.0M Secondary Offering Gold Brazil,French Guiana,Guyana, Suriname,Venezuela
Paladin Energy Ltd. Australia $81.6M Private Placement Uranium Malawi, Namibia, Niger, Australia, Newfoundland
Kirkland Lake Gold Inc. ON $69.0M Secondary Offering Gold Ontario
Banro Corporation ON $67.8M Secondary Offering Gold DRC (Congo)
Polymet Mining Corp. USA (MN) $62.5M Secondary Offering Gold, Copper, Nickel, Platinum, Palladium, Cobalt USA (MN)
MBAC Fertilizer Corp. Brazil $51.7M Private Placement Potash, Phosphate Brazil
San Gold Corporation MB $50.0M Secondary Offering Gold Manitoba
2013 Largest Mining Financings: TSX
TSX Venture Exchange
20 YTD August 31 2013
Company HQ Location
Gross Proceeds
Type of Financing Commodity Sought
Property Location
Santacruz Silver Mining Ltd. Mexico $40.4M Shares for Debt Silver Mexico
Corsa Coal Corp. BC $31.0M Private Placement Coal USA (MD, PA)
Dunav Resources Ltd. Quebec $16.8 M Private Placement Gold, Copper, Molybdenum Serbia
Maudore Minerals Ltd. Quebec $15.5M Private Placement Gold Quebec
Aldridge Minerals Inc. BC $15.0M Private Placement Gold, Silver, Copper, Lead, Zinc Turkey
Panoro Minerals Ltd. BC $15.0M Public Offering Gold, Copper, Molybdenum Peru
Monument Mining Limited BC $15.0M Private Placement Gold Malaysia
Probe Mines Limited ON $15.0M Private Placement Gold Ontario, Quebec
EastCoal Inc. BC $13.1M Private Placement Coal Ukraine
ATAC Resources Ltd. BC $13.0M Private Placement Gold Yukon
2013 Largest Mining Financings: TSXV
TSXV
21 September 12 2013
Ticker HQ Location
Gross Proceeds
Quoted Market Value
Commodity Sought
Property Location
Astar Minerals Ltd. TAR BC $0.600M $2.1M Gold, General Minerals BC
Aurania Resources Ltd.
AOZ Ontario $2.0M $9.1M Gold, Copper,
Uranium Switzerland
Black Widow Resources Inc. BWR Ontario $1.1M $2.1M Gold, Copper,
Diamonds, Zinc ON
Golden Peak Minerals Inc. GP BC $0.675M $0.668M General Minerals BC
Plate Resources Inc. PLR BC $0.750M $1.7M Copper, Tungsten, General Minerals BC
2013 Mining IPOs on TSX Venture Exchange
Toronto Stock Exchange
22 YTD August 31 2013
Ticker HQ Location Listing Method
Dual Listed On
Commodity Sought
Property Location
GoGold Resources Inc. GGD Nova Scotia Canada TSXV Grad - Gold and Silver Mexico
Loncor Resources Inc. LN Ontario Canada TSXV Grad NYSE MKT Gold DRC Africa
Midway Gold Corp. MDW Colorado USA TSXV Grad NYSE MKT Gold Nevada Washington
Sierra Metals Inc. SMT BC Canada TSXV Grad Lima (BVL)
Gold, Silver, Copper, Lead,
Zinc Mexico and Peru
Balmoral Resources Ltd. BAR BC Canada TSXV Grad - Gold Quebec
2013 Mining New Listings Toronto Stock Exchange
Global Mining Orlee Wertheim (416) 947-4477 [email protected]
Oil & Gas Monica Rovers 403 218-2805 [email protected]
Diversified Industries Justin Canivet 416 947-4710 [email protected]
Innovation Michael Kousaie 416 947-6626 [email protected]
Asia George Gao (8610) 6505 5811 [email protected]
Europe & Africa Graham Dallas +4420 3194 2580 [email protected]
Mining Americas Carlos Espinosa (416) 814-8861 [email protected]
TSX & TSXV: Myths and Realities in Challenging Times
